Tuesday, July 6, 2010

Update on The Ultimate Momentum Signal - 7th July, 2010

 A Day of Decisive Rally ... !!!

A quote from the previous update.  " As the market action has not been supporting the sell signal,  the market may  also stage a recovery in the next trading sessions. It may also be noted that the Indian market has stood like  a rock at a time of all round losses in the Chinese and western markets in the immediate past. " It was also  stated that decisive movement may be around the corner and the exit of the sell signal is a high probability.

Yes, the market rallied decisively on Tuesday and  the Nifty Future closed at 5300. The futures closed just around the resistance line joining the highs of the last twelve bars. The indices, both Nifty and Sensex, closed just below their similar resistance lines. However, it is seen time and again that the indices may open above the resistance lines and the premium on Nifty futures may lessening in the next day. The resistance line may become the new support line if and when it is decisively broken. 

Nifty Futures - Daily Chart

The next target for Nifty Future remains at the previous highs, which is marked as the resistance band between 5360 to 5400.

World Markets

The European indices the FTSE, CAC and DAX closed with strong gains of 2.59, 2.70 and 2.31 percents respectively. The US indices were trading at gains of 1.40 to 1.60 percents at 9 PM IST on the back of international cues. The fear index, CBOE VIX was hovering at 28.6 after decreasing by 5 % on Tuesday. 

Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  6th July 2010, is given below.
As expected the Momentum Signal has indicated exit of  all short positions as on 6th July, 2010.
Projected Momentum Signal Close Values

The projected levels of closing values corresponding to the momentum shift / neutrality / continuation as on the close of trading on 7th July, 2010 are given in the table below. The table also include the projected closing values of BSE Sensex corresponding to the momentum shift / neutrality / continuation signals.

Please click on the table to enlarge. For more info on the above table,  please click here.

The closing values ranges corresponding to the Momentum Signal values of +50 have moved down substantially and are  just above the trading range of Tuesday.

All readers of this blog are requested to read and understand all the intricacies of trading the Momentum Signal System and it's risk factors. Please do write in your comments and suggestions. 
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